Chief executive Mark Leslie said the improved financial result was driven by the record milk price and strong livestock values.
“On the operational side, we are laser-focused on core farming activities and operational excellence initiatives.
“Productivity gains through targeted pasture and livestock management have been key to the turnaround in performance.
“Market-driven conditions - such as high international demand supporting milk, beef, and lamb prices - have contributed to revenue outcomes, offsetting weather-related challenges such as drought in the Central North Island.”
Strong export demand for New Zealand beef had pushed up beef farmgate prices to above the five-year average, particularly from the key market, the United States, and lower domestic production.
Similarly, lamb prices had continued to rise, driven by continued strong demand in key markets and the reduced lamb slaughter volumes nationwide.
The announcement of forecast results on Thursday followed earlier reports of criticism around commercial performance and calls for the Government to sell the state-owned enterprise.
Pāmu was expecting a net operating profit for the 2026 financial year of between $56m and $66m.
It said the wide range of the next forecast recognised the risks presented by material adverse weather events, volatility in commodity prices, currency and other markets and geopolitical tensions.
The company’s full-year audited results will be posted in the last week of August.
- RNZ
